Negative Outlook for Energy Insurers
Saturday, 04 09 2016, Category: Insurance and Reinsurance, Country: World
Energy insurers continue to feel the pressure caused by over-supply of capital and falling demand from buyers, which may lead them to exit or scale back their participation in the energy sector, according to a report published by Willis Towers Watson.
For the 10th year in a row, capacity has increased in both the upstream and downstream insurance markets, while in the wake of the oil price crash, an even greater challenge comes from falling buyer demand, said the Energy Market Review.
As energy companies seek to cut costs, they are reducing their program limits and self-insured retentions, the report explained, noting that in this climate, underwriters have to compete even more fiercely for the reduced pot of premium available.
Source: Insurance Journal